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Samtex Fashions Ltd.

BSE: 521206 Sector: Industrials
NSE: N.A. ISIN Code: INE931D01020
BSE 15:32 | 23 Apr 3.55 -0.08
(-2.20%)
OPEN

3.79

HIGH

3.79

LOW

3.30

NSE 05:30 | 01 Jan Samtex Fashions Ltd
OPEN 3.79
PREVIOUS CLOSE 3.63
VOLUME 73789
52-Week high 8.75
52-Week low 3.10
P/E
Mkt Cap.(Rs cr) 26
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.79
CLOSE 3.63
VOLUME 73789
52-Week high 8.75
52-Week low 3.10
P/E
Mkt Cap.(Rs cr) 26
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Samtex Fashions Ltd. (SAMTEXFASHION) - Auditors Report

Company auditors report

TO THE MEMBERS OF

M/S SAMTEX FASHIONS LIMITED

We- have- audited the accompanying financial statements of M/s SAMTEX FASHIONSLIMITED ("The Company") (Financial statements of trading office of thecompany at New York are duly audited by R. Rehani & Co. Certified Public AccountantsP.C. New York) which comprise the Balance Sheet as at March 31 2017 and the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofSignificant accounting policies and other explanatory information.

MANAGEMENT RESPONSIBILITY:

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

AUDITOR'S RESPONSIBILITY:

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under section 143(10) of the Act.Those standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the managementas well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

OPINION:

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view (subject to thematters of emphasis mentioned below) in conformity with the accounting principlesgenerally accepted in India;

Subject to the above we report that the accounts represent true and fair view:

a) In the case of the standalone Balance Sheet of the state of affairs of the Companyas at March 31 2017;

b) In the case of the Statement of Profit and Loss Account of the profit/ loss for theyear ended on that date;

and

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

EMPHASIS OF MATTERS

We draw attention to the following observation:

a) The company has ceased its business operations at NSEZ plant and transferred itspremises at NSEZ to M/s Capgemini Technology Services India Limited. However as per theinformation and explanations provided to us the company has shifted its manufacturingactivities to a new factory outside NSEZ and commenced the production after the date ofFinancial Statements.

b) The company had given a Corporate Guarantee for an amount of Rs. 807.46 croresagainst secured loans taken by its Wholly owned Subsidiary namely M/S SSA InternationalLtd which has been declared Non Performing Assets (NPAs) by the banks. The company hasalso received the notice u/s 13(2) of the SARFAESI Act 2002 from consortium of banks forrevocation of its Corporate Guarantee.

c) The company has made a provision for Diminution in Value of Investments of itswholly owned subsidiary namely SSA International Ltd as the net worth of the companyhas been fully eroded during the year refer Note- N Para-(vi).

d) Balances of Unsecured Loans are subject to confirmation and consequential effect (ifany) on the financial statement remains unascertained.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:

1.

As required by the Companies (Auditor's Report) Order 2016 ("the Order") asrequired by Companies Act2013 and on the basis of such checks of the books and records ofthe Company as we considered appropriate and according to the information and explanationsgiven to us we annex hereto a statement (Annexure – A) on the matters specified insaid Order.

2. As required by section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to-the bestof our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by law have been kept by thecompany so far as appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disquali-ed ason 31March 2017 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial control over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

g) With respect to the other matters included in the Auditor's Report in accordancewith rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its FINANCIALposition in its financial statements – Refer note 28 Part A to the financialstatements.

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There was not required to transfer amounts to the Investor Education andProtection FUND by the Company.

iv. The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. These are in accordance with the booksof accounts maintained by the company.

For AGGARWAL & RAMPAL
CHARTERED ACCOUNTANTS
FRN: 003072N
Vinay Aggarwal
Place : New Delhi Partner
Date : July 27 2017 M.No.-082045

ANNEXURE - A TO THE AUDITORS' REPORT

ANNEXURE REFERRED TO IN OUR AUDIT REPORT OF EVEN DATE OF M/S SAMTEX FASHIONS LIMITEDPURSUANT TO THE COMPANIES (AUDITORS' REPORT) ORDER 2016 ON THE ACCOUNTS FOR THE YEAR ENDEDMARCH 31 2017 i. (a) The Company has not updated its records of fixed assetsshowing full particulars including quantitative details and situation of Fixed Assets.

(b) As explained to us the fixed assets have been physically verified by themanagement during the year. As informed to us there is a regular program which has beencarried out during the year. However we are unable to comment on any difference inphysical veri-cation and book records as Fixed Asset Register is pending to be updated.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii. According to the information and explanations given to us the inventory has beenphysically verified during the year by the management but the Stock records were underupdation. Accordingly they were not produced before us for veri-cation and we have reliedupon the information provide to us by the management. Further as explained to usdiscrepancies noticed on physical veri-cation were not Significant and have been properlydealt with in the books of accounts.

iii. As explained to us the Company has not granted any loans secured orunsecured to companies firm Limited Liability Partnerships or other parties covered inthe Register maintained under section 189 of the Companies Act. 2013.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 with respect to the loansand investments made.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public.

vi. We have reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government underSection 148(1)(d) of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and cost records have been maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

vii. (a) The Company is not regular in depositing with appropriate authoritiesundisputed statutory dues including income tax sales tax wealth tax Service taxcustom duty excise-duty cess Provident fund & ESI and other statutory duesapplicable to it. According to the information and explanations given to us followingundisputed amounts payable in respect of the aforesaid dues were outstanding as at March31 2017 for a period of more than six months from the date of becoming payable.

Particulars Amount (Rs.)
ESIC payable 1072219
Provident Fund Payable 1254037
TDS on Rent 153000
TDS on Contractor 99143
TDS on Professional 120569
TDS on Salary 530000

(b) According to information and explanation given to us the disputed statutory duesi.e. Income tax aggregating to Rs. 166.29 lakh that have not been provided for in thebooks of accounts on account of matters pending before concerned appellate authorities andITAT Delhi bench. The company is also in the process of -ling SLP before Supreme Court.(Refer note no. 28 part A to notes to accounts)

viii. According to the information and explanations given to us the company has notdefaulted in repayment of dues to a financial institution or bank or debenture holders.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). And term loans raised during the year wereapplied for the purposes for which those are raised.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For AGGARWAL & RAMPAL
CHARTERED ACCOUNTANTS
FRN: 003072N
Vinay Aggarwal
Place : New Delhi Partner
Date : July 27 2017 M.No.-082045